KFC is having a very good atmosphere for its employee to work and the corporate culture is also good to
deal with but there is little problem with the management issues that should be solved. The food quality
and services offered by KFC are excellent. KFC always keeps introducing new variety of chicken and
edible products that helps in continuous improvement and growth in the profit margins. Today’s
generation is very health conscious and prone to hypertension was thinking what if KFC offers or add
fresh produced products such as fruits and vegetables in their menu it can increase their sales as even
vegetarian people can enter KFC and can enjoy the delightful ambient. In terms of 4 P’s KFC is doing
exceptionally excellent.
1. Infrastructure University
Himalayan College of Management
Kamalpokhari, Kathmandu
Assignment
of
“Strategic Marketing”
Submitted By:
Rashna Maharjan
05201900003
Submitted To:
Sachin Pradhan
Himalayan College of Management
November 13th
, 2022
2. 2
Declaration
I hereby declare that the report entitled “Strategic Marketing Plan of KFC” submitted to Mr Sachin
Pradhan,. Himalayan College of Management as the assignment of Strategic Management in partial
fulfillment of Masters in Business Administration(MBA).
3. 3
Acknowledgement
I would like to express my deepest appreciation to all those who provided me the possibility to complete
this report. I would like to extend my regards to all the team of HCM MBA department for their timely
support. My thanks and appreciations also go to each and every one of our colleagues for their
encouragement and support. Furthermore, I would like to acknowledge with much appreciation to Sachin
Pradhan for providing this opportunity and contributing in stimulating suggestions and encouragement.
5. 5
Executive Summary
KFC is having a very good atmosphere for its employee to work and the corporate culture is also good to
deal with but there is little problem with the management issues that should be solved. The food quality
and services offered by KFC are excellent. KFC always keeps introducing new variety of chicken and
edible products that helps in continuous improvement and growth in the profit margins. Today’s
generation is very health conscious and prone to hypertension was thinking what if KFC offers or add
fresh produced products such as fruits and vegetables in their menu it can increase their sales as even
vegetarian people can enter KFC and can enjoy the delightful ambient. In terms of 4 P’s KFC is doing
exceptionally excellent.
6. 6
CHAPTER ONE: INTRODUCTION
Kentucky Fried Chicken (KFC) one of the most known fast food chains in the world started in the early
1930's by Kernel Sanders in the Southern USA as a small franchise operation. Colonel Sanders has
become a well known personality throughout thousands of KFC restaurants World wide. Quality, service
and cleanliness (QSC) represents the most critical success factors to KFC's global success. Food, Fun &
Festivity, this is what KFC is all about. Leading the market since its inception, KFC provides the ultimate
chicken meals for the Chicken Loving Nation. Be it Colonel Sanders secret Original Recipe Chicken or
the Hot & Spicy version, every bite brings a YUM on the face. At KFC we proudly say: KFC has more
than 11,000 restaurants in more than 80 countries and territories around the World. In 1971, Heublein,
Inc. acquired KFC, soon after, conflicts erupted between the Colonel (which was working as a public
relations and goodwill ambassador) and Heublein management over quality control issues and restaurant.
Food, fun and festivity, this is what KFC is all leading the maret since its inception, KFC provides the
ultimate chicken meals for a chicken loving nation.
Kentucky was owned by PepsiCo, Inc in 1986. KFC is the world’s most popular and third largest fast
food chicken developer and franchiser. KFC is globally famous for its Original Recipe® fried chicken. It
has 5200 units in US out of which 60 percent are franchised. KFC is well known for its fried chicken and
has 15,000 outlets in the world so it is globally well known. Company participates in many joint venture
operations as well and always tries to find out alternative venues to increase market share to gain better
position in the competitive fast food market and establish a stable position. KFC is a part of Yum!
Brands, Inc. which is world’s largest restaurant company possessing revenues of $11 billion. KFC is part
of the two PepsiCo divisions, which are PepsiCo Worldwide Restaurants and PepsiCo Restaurants
International both based in Dallas. David Novak is the president of KFC. KFC restaurants are located in
109 countries and territories around the world and serves 12 million customer everyday generating sales
of nearly $10 million per year. KFC is able to provide employment to more than 24,000 people globally.
7. 7
CHAPTER TWO: SITUATION ANALYSIS
2.1 Market Summary
The most recognise able brand in chicken with over 30% of the market share
Franchise food chain
Online order options
Deliver orders
2.1.1 Market Demographics
Following factors included in the demographical factors of the pest analysis of KFC:- a) Age: Generally
there is no age limit which is focus by the KFC. They target & focus on each and every age of the society.
But for somehow in our opinion they target heavily on the youngster as compared to the middle & old
age. b) Gender: In this case they generally focus on the both Males & Females of the society & similarly
target them. -: 3 :- c) Household Size: Household size plays a vital role in the demographical factor of
KFC. Generally they target the whole family not a single family members. That’s why he introduced
many family packages meals. d) Population: Population also plays a vital role in the demographical factor
of KFC. In the light of this population they can make their strategy
2.1.2 Market Needs
Consumer needs food
They want chicken or other nonveg
2.2 Swot Analysis
2.2.1 Strengths
Oldest and finest in Business High Goodwill Does not have any Core competitor In chicken
serving Large Number of Outlets at prime locations Serves variety of items under single menu Loyal
customers Faces numerous advantages of being a Multinational Organization e.g. economies of scale,
government incentives etc.
2.2.2 Weaknesses
Presence of Multinational competitors in the market e.g. McDonalds(specialized not in chicken serving
but in burgers) Imported raw material rise their prime cost
8. 8
2.2.3 Opportunities
Cheap and easy availability of labor Increase consumption of fast food has increased the market
size Consumer prefer “All under one roof” in order to increase their sales turnover they can increase or
add the served items
2.2.4 Threats
Entrance of New competitors into the market and intensive competitions
High political instability/uncertainty
Health conscious eating habits
Animal care activities
No support from government agencies
2.3 Competition
1. McDonalds
2. Subway
3. Mr. Burger
4. Burger King
5. Pizza Hut
6. French fries and soft beverages prices with relation to its competitors.
2.4 Product/Service Offering
1. Fried Chicken
2. Hamburgers
3. Sandwiches
4. Fries
5. Soft Drinks
9. 9
CHAPTER THREE: MARKETING STRATEGY
Gives more priority to family
Menu consist of more than 30 products
Open outlets on reachable places
Offers free home delivery
Following societal marketing techniques
3.1 Mission
To maximise profitability, improve shareholder value and deliver sustainable growth year after year
To be the leading integrated food services group in the ASIAN region delivering consistent quality
products and excellent customer-focused service
3.2. Financial Objectives
Products are priced high and target middle to upper class people
Adopt cost base price strategy
3.3 Target Markets
KFC targets the young generation, as here in this country the young generation is more towards eating out
and is more energetic. It targets the early single segment that is the upper class
3.4 Positioning
KFC products were first offered to upper socio-economic group. Later, introducing discounted and lower
price deals, they are now dealing in masses. So, KFC has traded down. In doing so KFC has used the
same brand name and same high quality product.
3.5 Strategies
Product Strategy of KFC
The product strategy is a brief outline of the products that a firm needs to sell its customers. For example,
KFC is popular for its world-class chicken burgers and fries. However, the list doesn’t end here. KFC’s
international marketing strategy keeps on introducing new items within the menu. Thus, it helps build a
strong product strategy and supports marketing.
10. 10
Promotion Strategy for KFC
The promotion strategy is connected to the ways in which the products of a firm can be promoted in the
market. For example, KFC promotes itself vigorously as the world’s second-largest fast-food giant. The
promotion occurs through television ads, magazines, newspapers, and commercial hoardings. KFC has
also sponsored the Big Bash League in Australia and many cricket games. Another critical aspect of
KFC’s digital marketing strategy is the slogan “It’s Finger-Lickin”, good that reminds its audience about
lip-smacking food products and delicacies.
Pricing Strategy of KFC
The pricing strategy established by the firms sets up the prices of their products to garner the audience’s
attention effectively. KFC utilises a discriminatory pricing policy for all products. The products have
different pricing and ratings. The food items sold in India are highly affordable. KFC promotes itself
through multiple mediums like TV, social media, News Papers, and more. However, it is still lagging on
sponsoring huge events.
The products sold in different countries have different pricing. Therefore, KFC used price skimming and
market penetration technique. This means that when their competitors entered the market, KFC reduced
the price a lot, and while introducing new products, KFC kept the prices to a minimum compared to the
later stages. This helps them in getting the desired attention.
Placement Strategy of KFC
The placement strategy relates to tracking the places where a firm can contact the potential buyers for the
products. But unfortunately, when it comes to KFC’s market development strategy, KFC’s marketing
team is extremely conventional to chalk out the grounds of their restaurants.
With its audience-winning strategies, KFC has become a big giant today. It has got more than 15000
outlets in 100 different countries. All the outlets of KFC are strategically opened in different areas where
colleges, schools and offices are there. The reason is, that the youth is much more indulgent in fast-food
products than the aged population of the country.
Distribution Strategy of KFC
With more than 18000 restaurants offering finger-licking fast food worldwide, KFC’s story and market
strategy evolved a lot. The strong tie-ups and collaboration with supply chain partners have helped them
serve the customers much better. KFC always keeps its outlets in premium areas like malls and shopping
places. Also, the KFC outlets carry out delivery for online orders. Thus, KFC covers both offline and
online deliveries.
11. 11
CHAPTER FOUR: FINANCIALS
KFC was started by Colonel Harland Sanders. He discovered his love for cooking when he was only 9
years old. Over the years, he grew up to become the personality the world knows as Colonel Sanders, the
founder of KFC.
He achieved celebrity status in 1952 when he decided to franchise his famous Kentucky Fried Chicken
recipe blend of 11 herbs and spices to the rest of America. In the early 1970s, this special recipe made its
way to Malaysia.
KFC Holdings owns approximately 27 Kedai Ayamas and 4 Ayamas Depot, making them the first
branded chicken and chicken chain. KFC Holdings operates the KFC restaurant chain in Malaysia,
Singapore and Brunei (523 restaurants) and the Rasamas restaurant chain in Malaysia (about 37 outlets).
Sources of finance are where the finance comes from. There are three types of sources which are bank
loans, equity (equity) capital and trade credit.
Finance is money, which is a scarce resource. In order to get it, a business has to compete for it.
Individuals, government and other businesses are looking for money to finance their needs. Those who
have money to lend will lend it provided that the rate of return (interest), risk and flexibility (how quickly
the money can be recovered) are in line with their expectations.
12. 12
CHAPTER FIVE: CONTROLS
5.1 Implementation
The company has continued to attract customers to its restaurants because of diversity. It is estimated that
it serves more than 12 million customers in a single day. The company has operations in more than 109
countries in the world. KFC is famous because of its original recipe that customers have continued to
identify with. The company will continue having good growth prospects with effective strategies in place
Walmart's cost leadership strategy comes with effective resource management at all levels.
5.2 Marketing Organization
KFC (Kentucky Fried chicken) uses demographic segmentation to serve the market according to customer
needs and wants. KFC's consumers are youth and young adults.
Previously, it served the same offering worldwide, meaning it used an undifferentiated targeting strategy.
However, in recent times, following the example of McDonalds, KFC has started to localize its menu,
giving it better market acceptability. In addition, it has recently transformed its positioning strategy from
product to value.
KFC has a strong position in the minds of consumers for its chicken menu. There are very few shops that
serve anything vegetarian. But when it comes to non-vegetarians, KFC is just great. His chicken wings
and chicken bucket is everyone's favorite. This excellent targeting technique is the reason why most non-
vegetarian food lovers flock to KFC.
5.3 Contingency Planning
Kentucky Fried Chicken (KFC) is a large quick-service fried chicken restaurant chain based in Louisville,
Kentucky. As of December 2018, it was already located in 136 countries at 22,621 locations worldwide.
KFC competes with large global food chains such as McDonald's Corporation. In addition to McDonald's
Corporation, KFC owner Sanders surpasses other food chains in its commitment to meet important
consumer needs such as recipe perfection, cooking speed, quality service and availability, pricing, optimal
food temperature, and safety. Kentucky Fried Chicken's value chain starts with suppliers and the
ingredients they offer, such as chicken, mashed potatoes, buns, condiments and packaging. It involves
intermediate processing for cooking, taking orders, and finally assembling the products to deliver the
order and hope that consumers are satisfied. As previously mentioned, quality of service (QoS), food
quality, and price are some of the determinants of consumer satisfaction (Cuong et al., 2019). However,
there have been some problems in the management of the company's operations in recent years, which
have led to the company's bankruptcy even though it is in operation.